Oak Ridge board reports on Alexander Inn, Mall finance issues

The Guest House/Alexander Inn senior living facility has completed its financial process and the new owner has paid the city's Industrial Development Board its share of tax percentage savings.

Beverly Majors/The Oak Ridger

by Beverly Majors

bmajors@oakridger.com

The Guest House/Alexander Inn senior living facility has completed its financial process and the new owner has paid the city's Industrial Development Board its share of tax percentage savings.

City Attorney Ken Krushenski reported during Monday's IDB meeting that Family Pride Corp. of Loudon had closed its loan on the historic property, and that he had received a check for $32,192 from the corporation.

Family Pride Corp. had been approved for a payment in lieu of taxes (PILOT) plan at 90 percent over 10 years. The company's total investment is about $4.8 million.

Work is currently underway at the historic Guest House to turn it into an assisted living facility. Also known as the Alexander Inn, it has been listed on East Tennessee Preservation Alliance's annual East Tennessee's Endangered Heritage list since 2010.

The IDB also agreed to waive fees associated with the Crosland Southeast tax increment financing (TIF). Crosland Southeast is the retail and mixed-use development firm based in Charlotte, N.C., that is under contract to purchase the Oak Ridge Mall property.

The IDB earlier approved a resolution to recommend the application for the Economic Impact Plan for the redevelopment of the Oak Ridge Mall property to the City Council and the Anderson County Commission after a public hearing in October.

The Economic Impact Plan is the first step in identifying the area from which the incremental tax revenues will be derived and to identify the qualifying project.

"This is the most upside project we could be doing for the city," said IDB member Chris Johnson in support of the Crosland redevelopment plan.

In other action, Chamber President Park Hardy said the Chamber is currently involved with several prospective business and industrial companies that are interested in Oak Ridge.

"We're working with two right now," Hardy said. "They are small, but sources for good job growth."

He also said the Chamber staff is talking with shopping center businesses and an investment company interested in housing development.

"We are seeing an interest coming back in those areas," the Chamber president said. He said the Westcott Center and the mall redevelopment are "dragging them back." The Westcott Center is the name for the area on South Illinois Avenue where construction for the new Kroger is underway.

Hardy also expressed his appreciation to IDB member Richard Chinn, who is also a local developer, for the renovation work his company is doing in Fairbanks Plaza.

"It's looking really, really good," Hardy said. He said the "wellness of existing businesses" seldom make headlines, but "they are the 'bread and butter' of our community."

The IDB also approved the purchase of 200 flower bulbs at a cost of $250 to plant in the islands at the Horizon Center; and agreed to extend the contract for Diversified Lawn Services for the center through December 2014.